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Are you eligible for the new child discount? Income limits for 2021 and more



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Check whether your family is eligible for the 2021 child discount.

Sarah Tew / CNET

The new Child discount 2021 brings up to $ 3,600 each qualified child to tens of millions of families in one series of payments until the end of the year, as in 2022. Depending on the number of children you have and their age, that could have a multiplier effect on your family, in addition to the third stimulus check for maximum $ 1,400 per person — including dependent persons (what you need to know about stimulus check delivery and how to track your paymentBut as with everything else in the new incentive accountThe details can be confusing about who qualifies for the CTC and how much money to expect when the benefits checks arrive later this year.

For this round of CTC payments, the amounts for each child are higher due to the impact of the pandemic on jobs, families and the economy. For a child 5 or younger, parents and guardians can receive up to $ 3,600 per child this year. So if your family has two young children, you can receive up to $ 7,200 in total. For every child between the ages of 6 and 17, parents and caregivers can receive up to $ 3,000 – that would add up to $ 6,000 for two children in this age bracket.

There are Other qualifications and details you need to know, and we’ll cover those below. Here’s some additional information about a potential fourth stimulus control, what to do if you change your third stimulus check when it could come how to track it and how to see what could be causing a delay in your Incentive PaymentBe here six other tax credits to give you more money this year also. This story was recently updated.

Parents of children ages 6 and up are eligible for $ 3,000 per child

If you have dependents aged six or older, you qualify for up to $ 3,000 per child, assuming you meet the income requirements (see below). This includes your family members who are 17 years old – originally, parents could only claim up to $ 2,000 for each dependent age 16 and under.

You can also get money for your older children, although that’s not nearly as much. You can claim up to $ 500 for an 18-year-old as well as full-time students between the ages of 19 and 24.

This is what parents who share custody of a qualified dependent must know

Child Tax Credit 2021 qualifications

Who is eligible What the law says

Single filter

An AGI of $ 75,000 or less to qualify for the full amount

Head of the household

An AGI of $ 112,500 or less to be eligible for the full amount

Couple filing jointly

An AGI of $ 150,000 or less to be eligible for the full amount

Child aged 5 and under

Credit for $ 3,600 each if the parent / guardian meets the above requirements

Child aged 6-17

Credit for $ 3,000 each if the parent / guardian meets the above requirements

Nonfiler

Must file a 2020 tax return to receive payment

Parents of children 5 and under could afford $ 3,600 per child

If your family members are under the age of six, you can claim up to $ 3,600 per child as long as you meet the income requirements below. That’s $ 1,600 more than the $ 2,000 parents could claim on their 2020 tax returns.

This includes newborn babieseven if they are born later in 2021. The parent company could likely update the IRS portal with their new dependent information to receive the prepayments this year, said Garrett Watson, a senior policy analyst at Tax Foundation. Otherwise, next year, parents can file a claim on their 2021 tax returns. However, everything can change from now on until the IRS gives us more information and makes the portal operational – the IRS has not set a specific timeline for that yet.

like you share custody of a qualified dependent, read this


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Some filers with an AGI of $ 75,000 or less are entitled to the full amount

As long as your adjusted gross income (aka AGI) is $ 75,000 or less, single parents with taxpayers are eligible for the full amount of the child rebate. After $ 75,000, the amount begins to taper off.

According to Joanna Powell, Managing Director at CBIZ, the credit will run out by $ 50 for every $ 1,000 in income above the threshold amounts for all submitters.

Household heads with an AGI of $ 112,500

As a householder, your AGI must be $ 112,500 or less to be eligible for the full CTC amount. The amount you could get will start taper off if your income exceeds $ 112,500.


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Couples who apply jointly and exceed this AGI can receive a partial benefit

If you are married and are applying with your spouse, your AGI must be $ 150,000 or less to be eligible for the full CTC amount.

Are you still eligible for the new child tax credit if you do not file a tax return?

Even if you don’t usually file a tax return – you are considered a non-filer – you must file a tax return to qualify for the 2021 child tax credit. IRS Commissioner Charles Rettig said payments will be automatic for those who file their 2020 tax returns before May 17, so if you haven’t filed your tax return by then, the IRS doesn’t know whether to send you a payment.

It is also important to file a tax return in case you have acquired new dependents since the last filing. That way, you can get the full CTC amount you owe.


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Other child discount qualifications that you must meet

  • The child you claim must live with you for at least six months a year.
  • You and your child must be US citizens, unlike mixed-status households.
  • For married couples filing jointly, at least one spouse must have a Social Security number or an ITIN, Powell said.
  • The child must also have a Social Security number – a child with only an ATIN is not eligible (this includes adopted children.)
  • Parents who share custody of a child cannot both get the tax credit

Important: The results here are based on our current understanding of the law, but should only be considered broad estimates. Consult a financial planner for a more personalized estimate.

For more information, here everything you need to know about the 2021 child discount and when your payments might come in


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